$8.2M Covid-19 Mask Scam: 2 Arrested for Pandemic Profiteering

Central Islip, NY – In a shocking display of greed, two individuals have been arrested for defrauding a Canadian company out of $8.2 million in a COVID-19 mask scheme.

Jonathan Cannon, 58, of Miller Place, and Julie Dotton, 51, of Orchard Park, were taken into custody earlier today at their respective homes on Long Island and Buffalo. They are charged with wire fraud in connection with the scam, which allegedly took place at the height of the pandemic.

According to court filings, Cannon and Dotton misrepresented their ability to obtain personal protective equipment (PPE) to the Canadian company, which was an official provider of PPE to two Canadian provinces during the COVID-19 pandemic. Using a nominal entity she controlled, Dotton entered into a contract with the company to sell approximately 12 million face masks for $8.2 million.

After the company wired the payment to a purported third-party escrow agent’s bank account, Cannon and Dotton caused the funds to be transferred to a bank account controlled by Cannon, who then disbursed the money to various third parties for their benefit. The defendants allegedly strung the company along with excuses for several months before being exposed.

“As alleged in the complaint, the defendants sought to take advantage of a provider’s need for life-saving personal protective equipment through a fraudulent scheme that was designed in reality to line their own pockets,” said Breon Peace, United States Attorney for the Eastern District of New York.

“This Office will continue to work diligently to ensure that fraudsters who sought to capitalize on the worldwide pandemic will be brought to justice. There is no free pass for Covid-19 fraud.”

Cannon was arraigned before United States Magistrate Judge Steven L. Tiscione, who released him on a $500,000 bond. Dotton will make her initial appearance this afternoon in federal court in the Western District of New York.

The government’s case is being handled by the Office’s Business and Securities Fraud Section, with Assistant United States Attorneys Drew G. Rolle, John O. Enright, and Adam Toporovsky in charge of the prosecution.

The defendants are presumed innocent unless and until proven guilty. If convicted, they face up to 20 years in prison and a fine of up to $250,000.